Author Archives: 5-dimensionz

What is your plan?

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boer maak ‘n plan

In Afrikaans, the language spoken by the mainly Dutch immigrant descendants living in South Africa ‘boer maak ‘n plan’ means a ‘farmer makes a plan’.  The deprivations and harshness of farming in a foreign land brought resolve and the need to plan to get around or solve these problems.  Having travelled recently in Southern Africa I came across another similar saying in Zimbabwe where people often spoke about ‘making a plan’.

What does the saying really mean?

Not as it appears literally. The ‘hidden’ meaning is that you have an alternative plan (a plan B) when your first plan fails or is impossible to implement. In other words, you need to be flexible and adaptable to solve a problem.

How does this equate to being a manager or managing a business?

As business owners or managers, we need to plan in the first instance. As the saying goes, ‘if you fail to plan, you plan to fail’. 

However, having a rigid plan may not work if circumstances change. Let me give you an example?

Many years ago in our third party logistics business we were having difficulty in getting our trucks unloaded on time at a retailer’s distribution centre despite meeting their strict time slots. It was OK for the distribution centre to run late unloading you, however if you failed to arrive at the designated time slot you were ‘fined’. What made the situation even worse was that to make the early morning delivery time slots, trucks had to battle peak hour traffic to and from the distribution centre as well as the loading delays. This became an expensive experience – instead of 3 hours it was taking 6 hours to deliver and unload. It was further compounded by our fixed price delivery charge.

We had many meetings with distribution centre management and despite their assurances that the situation would improve, it did not.

What would solve our problem and be a ‘win’ for the distribution centre? Our Plan B.

Making some observations and talking to the receiving team at the distribution centre a plan emerged. All loads were hand unloaded (rather than on pallets) onto a conveyor with the individual cartons being scanned as they travelled up the belt. The distribution centre had a prime mover that was used for moving trailers around the receiving area.

We asked distribution centre management whether we could trial loading a 40’ container instead of an ordinary tautliner semi-trailer. We would bring the loaded container in early in the morning before peak hour, leave it in the receiving area for the distribution centre prime mover to move onto the unloading conveyor when it suited the receiving team. The empty container would then be picked up on the next early morning delivery. After a short trial, it was found that it was a win/win for both us and the distribution centre. Delivery time halved with a massive increase in margin for us and the distribution centre was able to utilise their receiving area far more efficiently.  

The success of the trial enabled us to purchase two second hand and obsolete hand semi-trailers for 10% of their replacement value and establish a unique closed loop delivery system that was extremely profitable.

We solved the waiting time problem and the peak hour travel problem which initially appeared to be unresolvable. We significantly increased our profits by having a Plan B.

Remember in any situation, you should always have a Plan B like the farmer faced with the unpredictability of the harsh African environment…….

Business Values – are they of value?

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Business Values – are they of value?

“When you are led by values, it doesn’t cost your business, it helps your business”
Jerry Greenfield

Many business advisers and media commentators maintain that business values are essential for a business to be successful. Many CEOs and business owners think this is just “consultant speak” or just a marketing ploy to drum up business. They think the prime purpose of business is to make money.

An ongoing debate in the business sector seems to be around whether or not business values are of any value at all. When Moses received the Ten Commandments on Mount Sinai what was their purpose? To give clear expectations on how God expected people to behave. To dictate what someone of the Christian or Jewish faith can and cannot do. So in our modern world has anything changed – are values in business important?

Think of some recent business failures.

These may illustrate the point about whether or not values are important. Remember Enron’s collapse in 2001 after the company defrauded investors and the senior executives were gaoled? What about the late Alan Bond who deceptively siphoned off shareholders’ funds from Bell Resources to prop up his Bond Corporation in the 1990s? Unfortunately not only were shareholders’ funds lost. People also lost their jobs.

Wayne Bennett, an Australian National Rugby League (NRL) coach is a positive example of the ‘value of values’ in an organisation. In over 25 years of first grade coaching, his teams have won 7 premierships. Quietly spoken, at times appearing unemotional, much of Bennett’s success could be attributed to his high values which flow onto the players in the teams he coaches. Talent is not enough, players who do not meet behavioural standards, work ethics or have the team’s interests at heart, were quickly removed from the team. Bennett showed his true values when he sacked Wally Lewis, as Broncos captain. Lewis was also an Australian captain. The public outcry was overwhelming, with irate fans calling for the Broncos to re-instate Lewis and sack Bennett. He had the long term interests of the club at heart and the Broncos went onto winning more premierships.

As a manager or business owner, business values and your values are important. Sound business values lead to better places to work, more satisfied customers and higher profits. Furthermore, they provide guidance on how to handle everyday problems. This is why values have expectations.

As a manager or business owner, people whether employees, customers or the public are watching……

Customer Service – how much do you care?

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“Your customer doesn’t care how much you know until they know how much you care”
Damon Richards

Customer service is about showing how much you care – actions speak louder than words. How often have you been annoyed or angry about being shown indifference by people in customer service roles? There are 10 customer service actions – note the words ‘service’ and ‘action’ that I think all people in custom service roles should use. I will use an example that was the subject of and earlier blog.

Many years ago I was managing a vehicle transport company in regional Australia. A transport manifest arrived by fax at 4.00 pm and upon reading it I learnt that there was a car arriving within the next 2 hours that was due in Brisbane that night. Brisbane was 1,200 kms up the road (14 hours drive away). To make matters more complicated the car was needed by the customer in Cairns in 2 days time (a further 1,700 km away or 20 hours drive away). The vehicle was for a customer to use on his tropical beach holiday a further hour’s drive north. There was no way of physically getting the vehicle to Cairns for the customer.

1. Calling back when promised

The customer was called back. After initially alerting him to the problem the customer was called back within the 24 hour period as promised.

2. Explaining what caused the problem…………..in simple language

I explained that it was our fault and we would have a solution for him not having his car on holidays.

3. Letting customers know who and what numbers to call

He was given my phone number and the Brisbane branch manager’s phone number.

4. Contacting customers promptly when a problem is solved

As soon as the hire car in Cairns had been arranged he was advised.

5. Giving customers full access to speak to management

I stated that if he was not happy with our solution he could contact my General Manager.

6. Telling how long it will take to solve a problem

He was assured that we should be able to solve the problem before he left for Cairns within next 48 hours.

7. Offering useful alternatives if a problem can’t be solved

As we could not physically get his car to Cairns on time, we offered him a hire car at no cost.

8. Treating customers like people, not account numbers

Self explanatory.

9. Advising customers on how to avoid a future problem

It was suggested that he advise the depot next time he required his vehicle to be transported that it was “IMPORTANT” and needed priority.

10. Giving progress reports if a problem cannot be resolved

Whilst we solved his problem by offering him a hire car, he was contacted at every transport leg where the car was delivered to Cairns.

A seemingly impossible situation was solved using these 10 customer service actions. The customer was happy and continued to be a client for many years. As the quote implies, I could have told him it was impossible to get his car to Cairns in the time frame required (“how much you know”) Instead, customer service was demonstrated (“how much you care”) and he was happy.

These 10 actions are so fundamental to good customer service that in our logistics business I had them framed and placed in every office.

What is NOT Leadership?

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What is NOT Leadership?

“Leadership is the art of getting someone else to do something you want done because he wants to do it”

Dwight D. Eisenhower

Too often we spend time on creating ‘To Do Lists’. Would we be more effective managers if we created ‘Stop Doing Lists’? Jim Collins, the author of Good to Great certainly thinks so.

We often hear or read about definitions or examples of great leadership. So is it important to recognise the opposite of good leadership in either ourselves or others?

John Cleese the famous comedian and Antony Jay one of the authors of TV show “Yes Minister” made a fortune from training videos that emphasised what not to do as a manager. So maybe this approach works!

The recent drugs saga in the Australian Football League (AFL) surrounding the Essendon Football Club which began in 2011 (and is still ‘unresolved’ at the time of writing) provides some good examples of ‘how not’ to be a leader.  In summary, a biochemist began a Club sanctioned supplements program with the aim of improving player and team performance. The team members were injected with unknown substances with the knowledge of the coaching staff and Club executives. While the drugs  may have been illegal (no records were kept so the drugs remain unidentified) there were further unanswered questions about possible long term health effects on the players. A lack of duty of care.

The club was fined, some board members resigned and players were provisionally suspended for the pre-season Cup pending further hearings. The head coach, the person responsible for the players went on ‘study leave’ to Europe for a season whilst still collecting his substantial salary taking no responsibility for the supplements taking regime that occurred under his management. On 1 October 2014, the club announced that they would not appeal the Federal Court’s ruling, stating that to do so would act against the interests of the players. However, the head coach appealed the Federal Court decision acting in an individual capacity and “on a matter of principle”.

This brief summary highlights some three clear examples of poor leadership and like the John Cleese training films tell us, what not to do as leaders.

  1. You don’t take responsibility when something goes wrong

It’s OK while things are going well however when something goes wrong you start to look for someone or something else to blame. Leaders take responsibility whether it’s good or bad. Taking responsibility makes you a leader. That is why people follow you. Clearly the head coach did not take responsibility for what was occurring.

  1. You put yourself first and not your team.

While the Club refused to appeal the Court decision as they deemed it would “not act against the interests of the players”, the head coach did appeal on a ‘matter of principle’ effectively putting his interests ahead of the team. It could also be argued also that the subjecting those whom you are responsible for to unknown dangers (i.e. unknown drugs in this case) is poor leadership.

3. Complacency or failure to ask questions

As the team coach, complacency or just plain incompetence for allowing an unregulated sports supplements program to be undertaken when you were ultimately responsible. As a leader you have very important responsibilities, one of which is to ask questions whether it is to ensure the safety of those you are responsible for, get the best from suppliers or seek answers to improve performance.

So as a leader, the people you are leading whether they are subordinates or people who choose to follow you, expect you to take responsibility, put the team first, actively lead the team, ask the right questions and look after their welfare……………failure to do so is NOT leadership.

Doing Your Homework

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Doing Your Homework

“All of us, at certain moments of our lives, need to take advice and to receive help from other people”
Alexis Carrel

How often in your work or business life have you not done your homework and put yourself under unnecessary pressure?

I can remember an incident very clearly where I thought I could prepare a capital expenditure application for an environmental washing plant at a concrete plant located in regional Victoria, whilst sitting in my office in Melbourne. There had been great reluctance from head office to fix the environmental problem of disposing of concrete waste as it was costly. Nothing surprising about that! I gathered ‘letters of protest’ from neighbours, one of whom was an employee who lived behind the plant. Upon touring the area with my General Manager several weeks later, he brought out the application and stood near where I had said the washing plant was to be located and started asking questions. This was a very trying time as the document explained where the waste water was running – and it was up hill! Obviously not immediately obvious from my office in Melbourne!

I learnt two valuable lessons:

• do your homework
and
• there is no substitute for physically being on site

However, even the largest companies fail to do their homework. Several years ago Rio Tinto, a major international mining company was forced to write down $3B because their plan to barge coal down the Zambezi River was not physically possible and required government approval to dredge the river. Perhaps they could have learnt from history – David Livingston the famous African missionary and explorer was unable to navigate up the Zambezi in a small craft due to the Cahora Bassa rapids which he had not investigated previously. The Rio Tinto Managing Director lost his job primarily over this debacle.

Years later in our logistics business we had to convert a casual warehouse lease to a more formal non-casual lease. We were nervous that our landlord would want both a long term commitment and an increase in rent. The previous week our warehouse manager advised us that the owner had been on site several times over the past month with ‘unknown’ persons in suits and that there had been some cosmetic tidying up and painting on external parts of the building.

I did some more homework and discovered that the landlord was seeking to sell the property and he needed a permanent lease to interest a possible purchaser. This information changed the dynamics of the negotiations and we were able to negotiate a less than market rent, shorter fixed terms and lower annual increases and the owner was delighted – a real win/win.

Remember there is no substitute for doing your homework thoroughly……..

“Do as I say, not as I do”

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“Do as I say, not as I do”

This is not a really a quote, but an expression. The derivation is believed to originally come from the Bible, Matthew 23 “For they preach, but do not practice” when Jesus highlighted the hypocrisy of the Pharisees in the Temple. Years later a book by Peter Schweize titled Do as I Say (Not as I Do): Profiles in Liberal Hypocrisy sought to expose the public utterances and conflicting private actions of leading ‘progressive’ USA politicians.

What relevance does this have to being a good manager?

Plenty.

Let me give you an example. It was a condition of site entry in a business I was involved with that all staff had to either sign in or use an in/out who’s on site entry board. Two senior managers, including the CEO rarely did this, despite it being mentioned and noted in safety and management meetings. One day we had a fire evacuation drill which is mandated by law. This is where the building is evacuated and the site safety representative calls out the names of those on-site to ensure everybody is out of the building. After the names were called out you are asked to stand to one side. This is to ensure that the fire safety drill has worked successfully.

In this case, two people were left with their names not called out – the two senior managers. One made some excuses. The other was embarrassed.

How did this look to staff? Well you can only imagine.

Staff pick up hypocrisy quickly, word spreads and the authority of management and company policies are eroded. Also the moral authority or status of individual managers is severely weakened. In this case it seemed to demonstrate to the assembled staff that either safety was not important and/or that there were two sets of rules. I witnessed plenty of sniggering and hushed conversations at the time.

Another example is the wearing of safety vests in industrial environments such as warehouses and construction sites. In the business mentioned earlier, it was a requirement for all staff to wear safety vests and this was enforced by the supervisors. However some senior managers still continued to walk around the site without safety vests as required by company policy. Warehouses are potentially dangerous places, especially with fork lift trucks and other equipment on site. Even worse, this action unsettles operators who have to perform their duties with a heightened level of concern that, at any time, plain clothes staff can and will wander the warehouse, exposing all parties to risk. These actions undermined the authority of the supervisors and in discussions with them, reduced the respect for the managers who did not abide by company rules.

We are often bombarded by media coverage of politicians in safety vests, goggles and hard hats on the campaign trail. Whilst this may seem like overkill, it does send an important message. What would be the affect if the politicians did not wear the prescribed person protective equipment?

Management is about integrity and leading by example – you can’t expect staff to perform or conform to the required standards if you as a manager or supervisor don’t. Do the right thing at all times, and your staff will respect you for it. Don’t and you will pay the price, at the least in lost respect and poor compliance and at worst – an avoidable site injury or fatality.

As a manager your actions are important to the organisation, yourself and the staff…

Can you compare the game of cricket to business?

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Can you compare the game of cricket to business?

“If there is any game in the world that attracts the half- baked theorist more than cricket I have yet to hear of it”

Fred Trueman

The Cricket World Cup is currently underway in Australia and New Zealand (February-March 2015) so it is timely to compile a piece using cricket as a metaphor for business. Think of the game of cricket – there are 3 main parties involved the batting side, the fielding side (with bowlers) and the scorers (sorry this may upset the scorers – even some batsmen upset them)

Can running a business be compared to the game of cricket?

Yes.

In business you have active participants – employees and customers. In cricket you have active participants that make things happen – the bowlers and fielders on one side, and the batsmen on the other.

In business you also have parties that are not active in running the business – for example chartered or compliance accountants and solicitors. In cricket you also have a party not active in the game of cricket. The scorers – who keep the score.

Do chartered accountants perform a similar role to scorers in cricket?

Scorers only record what is happening they never give advice on what to do for the future or participate in the game.

What do chartered accountants do?

They record what has happened in the past. They do not actively participate in the game of business. So if chartered (or compliance) accountants offer business advice, I would caution against accepting such advice if they do not have business experience.

This may seem a harsh statement about accountants – let me give you an example.

We are currently renovating our bathrooms – rather boring don’t you think? No, because of the story the builder told me about his accountant made me feel sorry for him. Just under 10 years ago, his son set up a retail business. They both went to their accountant for ‘professional advice’ on how they should set up the legal entities for the business. His accountant came up with a corporate or business structure ‘on the cheap’ saving them $1,000 and making them joint directors of the new company and the existing building company.

The sad story is that the retail business failed after initially being very successful. Due to the linkage between the two companies, the father became liable for the debts of the retail venture pushing him to the brink of bankruptcy – all to save $1,000 and nearly lost his hoouse. The advice from their accountant was certainly not professional or the correct advice. It highlights the risks of compliance accountants calling themselves business advisors (or legal advisors), especially as many have not actually run a business other than their accounting practice (see blog regarding the business skills of my former accountants.) This is very risky for unwitting business owners.

Receiving business advice from a compliance accountant as distinct from compliance type accounting advice could be a risky strategy.

Do you go to a dentist if you have a sore back or a cold?

Then you should not go to a compliance accountant for business advice, unless they have the necessary experience and qualifications. Our builder’s accountant not only failed to give professional advice because he did not forsee what can happen if a business fails. Perhaps he should have recommended our builder seek legal business advice?

Enjoy the Cricket World Cup and let’s hope the scorers keep score!

Remember in business (and also in your personal life) see advice from professionals in their field……………it is less likely to put your business (or your health at risk)!

Never, never, never give in

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“Never give in. Never give in. Never, never, never, never—in nothing, great or small, large or petty – never give in, except to convictions of honour and good sense”

Winston Churchill

Winston Churchill was known for his inspiring speeches. Unlike most politicians today, he wrote many of his speeches himself. In business, as leaders and managers we could do far worse than be inspired by some of Churchill’s famous speeches.

Never giving in? Often in the face of adversity it is easier not to make the extra effort to achieve the outcome required. As I reflect on my journey of establishing and managing a business, Churchill’s ‘never give in’ speech resonates.

Back when the business was just starting out, we were given a 3 month contract with a major Australian retailer to manage their Christmas overflow. This effectively doubled our existing business and would have prevented the business from failing. After we had signed the contract we then received a phone call saying ‘sorry, we’ve decided not to use you’.

Large Australian retailers are notoriously ruthless in dealing with suppliers, especially small ones. Although we had a contract we were in no financial position to seek redress for them breaking the contract. If we had taken legal action we would have been out of business before the matter was addressed and, we could not afford it anyway. With our backs to the wall, we went back and negotiated successfully with the retailer’s manager and convinced him that the honourable action was to adhere to the contract. This gave us our first big start in the business.

Several years later, our largest customer owed us a six figure sum and was reluctant to pay. Failure to pay would have meant our business would have collapsed unless we were able to secure a bank loan to cover working capital. This was something we were reluctant to do as our houses had been mortgaged to establish the business. Negotiations were not fruitful in reducing the debt owed to us and we became extremely worried. We kept the pressure up without success. Luckily the customer decided to cease using our services but they needed to move their stock. This presented the lever we needed to get paid. Put simply, “no payment no stock” and our business was saved (post note: 12 months later the customer went broke). Never, never give in had saved our business on a number of occasions.

Finally, successfully selling our business was our last example of ‘never, never, never give in’. After 2 failed sales attempts in 12 months it looked as though the business would never be sold and we would not receive a reward for our 15 years of hard work (and worry!). Seven prospective business brokers were interviewed to assist in selling the business and were rejected for one reason or another. It looked like another failure. However, I encouraged one of the brokers to try another approach. After weeks of trying to convince all my partners to use his company’s services, he was appointed to sell the business. This proved a decisive. The broker had international experience and was able to sell the business to an international buyer well above expectations.

I recently read a great blog about not giving in where the author states “Anything worthwhile is worthwhile sticking with until it is done” this applies to not only business but life itself.

In business as in management, staying power or persistence will often win out in the end………sometimes when you least expect it.

Managing Customer Complaints

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Managing Customer Complaints

“Quality in a service or product is not what you put into it. It is what the client or customer gets out of it”

Peter Drucker

As business owners, managers or supervisors some of the worst moments in your working experience can involve managing customer complaints (note the word ‘manage’ rather than ‘handle’?)

The experience is often stressful, uncomfortable and unpleasant isn’t it?

Customer complaints have serious ramifications for your business and if not managed well can seriously damage the business. Customer complaints do however provide an opportunity to turn a negative into a positive and enable you to retain the business.

Remember it is estimated that less than 10% of customers complain about customer service, they just go elsewhere and we rarely know why. Don’t dread customer complaints, but instead view them as an opportunity to create a long term customer. A complaint gives your business a second chance!

There are 6 steps in managing a customer complaint:

  1. Let the customer vent their anger

Remain calm, try and keep personalities out of the situation and allow the customer to vent their anger and listen attentively.

  1. Make ‘I’ statements and apologise

Build rapport and build empathy by using ‘I’ statements: “I can understand………..I would be angry” show that you are taking sides WITH the customer. The anger is addressed at the problem and not you.

  1. ‘So what you are saying is…’

Try and understand what the problem is by using effective listening techniques – paraphrase what the customer is saying and ask clarifying questions so that you have a clear understanding of the issue.

  1. ‘This is what we can do….’

Take responsibility for solving their problem and let them know what you can do. It is important to use positive language and offer solutions, options or a course of action. Make sure you gain agreement from them.

  1. End positively

Thank the customer and explain what you intend to do, when and how.

  1. Just ‘do it’

Just like the Nike advertisement ‘just do it’ means providing updates, following up within the agreed time frame and communicating with them (personally is best) when that action has been completed.

This is an example from a few years again when I was managing a vehicle transport company. A transport manifest arrived by fax (yes many years ago) at 4.00 pm and upon reading it I learnt that there was a car arriving within the next 2 hours that was due in Brisbane that night. We were in Wagga Wagga in country New South Wales Australia 1,200 kms (14 hours away) from Brisbane. The car then had to be loaded onto a truck north for Cairns (a further 1,700 km away or 20 hours away).The car was needed by the customer in Cairns in 2 days time for him to pick it up from the airport and drive to his tropical beach holiday destination a further hour’s drive north.

This was Mission Impossible!

It was a physical impossibility to have a car in Cairns nearly 3,000 km away in 2 days even if it was driven there.

Flying a car was not an option!

Should I be like Corporal Jones in the BBC TV series “Dad’s Army” and start panicking?

What happened?

I called the customer (with extreme dread) and explained the situation 3 hours before he was due to board a direct flight from Melbourne to Cairns.

His reaction (Step 1) was dismay although not overt anger – how was he going to get to his holiday house?

I apologised (Step 2) and asked him again (Step 3) what his requirements for transport for his holiday were. He needed to have a car to travel to and around his holiday destination.

I then gave him several options, one being that we would provide a hire car at no cost for his holiday or until his car eventually arrived (Step 4).

He agreed, I thanked him for his understanding (Step 5) and said I would arrange this and get back to him.

A hire car was organised, using my personal credit card to be available at the local Cairns airport lounge for his arrival (Step 6). I then phoned him back just before he boarded the plane. He was very happy with the outcome. He continued to be a client for many years.

Even the most difficult situations can be solved using common sense and the 6 Step approach to managing customer complaints……………

Compare this approach that described in one of my earlier blogs.

It is quite a contrast isn’t it?

Priorities…

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Priorities…

“Having my priorities in order has really helped me look better, fresher and more relaxed”
Kim Cattrall

Maybe a quote from a TV star (Sex and the City) is not what you would expect to head a blog about priorities in work and business. However, it does highlight the fact that if you have your priorities in order, you can achieve great things and not be side-tracked by unimportant issues.

Let me give you an example. A friend of my daughters popped in recently for a quick catch up. I asked casually how things were going in first 12 months of her job. She started to complain that the new managing director (and this was a multinational company) had decreed that only white coffee cups were to be used and she wanted to use her Lord of the Rings coffee cup. Other people were complaining as well.

These types of decrees are not uncommon as shown by the linked article about the former managing director of BHP Billiton, the world’s largest mining company. He put out an edict about desk ‘etiquette’ that bordered on the neurotic, at a time when the company had both great opportunities and of course many problems. He subsequently left the company with very little to show for his tenure at the helm, in particular the missed opportunities.

Micro management is normally a red light that may indicate that management does not know how to prioritise; treats staff as unimportant, and is not up to the “real” job. I once worked for a manager who was obsessed with orderliness, where all prospective customers were placed in labelled manila folders and filed (and that’s where they stayed!) whilst he complained that I should not keep active files on the floor near my desk as it made my office untidy. Perhaps it did make my office untidy, it certainly did not stop my success in achieving sales. I can remember another good example from years ago. I was studying whilst working full time and thought it would be a good idea to give my then manager a draft of one of my one of my assignments (which was about the industry we work working in). He proceeded to mark the spelling and grammar (this was before Spellcheck)

…………..little wonder he was dismissed some years later.

So what would be your advice to my daughter’s friend?

Be defiant and show independence and continue to use her Lord of the Rings cup?

It’s all about priorities.

Is it important?

………possibly demotivating, irritating and annoying ‘yes’ but important ‘no’?

We asked her:

“Is this important to you doing your job to the best of your ability?”

“No”

“Then it’s not a high priority is it?”

As the link to blog below, the expression “when a dog is in the hunt, it has no time to search for fleas” has relevance.

Remember it is up to you get your priorities right………………..

If you do, life and work is far less complicated and you are more likely to be much happier and more successful.